The FCC concluded that consumers will reap the rewards of the public interest benefits that will flow from these mergers.
The benefits include:
- Integration of complementary networks, which will increase efficiency and provide consumers with new services and improved network performance and reliability.
- The mergers will create stable, reliable U.S.-owned companies that will provide improved service to government customers and benefit national defense and homeland security.
- The mergers will give the companies increased economies of scale and scope, which should increase their incentives and resources to engage in basic research and development.
- Finally, the mergers should result in substantial cost savings, which should benefit consumers throughout the country.
Thirty-three states and the District of Columbia have cleared the SBC/AT&T merge. Reviews are pending in Arizona, California and Ohio. Until all state approvals are completed, the two companies will continue to operate as separate and independent companies and serve their individual customers' needs. The companies expect the merger to close later this year.
"Today's decision brings us one step closer to a new era in communications, information services and entertainment. Combined, SBC and AT&T will deliver superior network services and a portfolio of solutions that will help both businesses and consumers," said David W. Dorman, AT&T chairman and chief executive officer.
A handful of states have yet to approve the Verizon/MCI merge. Both companies anticipate that they can close the transaction later this year or early in 2006.
Verizon said the combined company will be better able to compete for and serve large-business and government customers by providing a full range of services, including wireless and sophisticated Internet protocol-based services. Consumers and businesses will also benefit because the new company will have the financial strength to maintain and improve MCI's Internet backbone network.
